Simplicity Esports and Gaming Company has entered a letter of intent that would see Redragon obtain equity in its Brazilian subsidiary.
The deal would see Redragon acquire 7.5 percent equity stake in Simplicity One Brasil, the company behind Flamengo Esports, for $390,000 (£290,746.95) in cash and over $133,000 (£99,152.16) in additional consideration.
The transaction would see the formation of a training centre sponsored by Redragon, which sponsored Flamengo Esports in March, analytics, and a tournament platform that the peripherals company would manage.